Trump says he'll review Netflix-Warner Bros. deal
What's the story
President Donald Trump has expressed concerns over Netflix's proposed $72 billion acquisition of Warner Bros. Discovery's assests. He said he would be involved in the review process and noted that the combined entity's market share "could be a problem." The comments were made as he arrived at the Kennedy Center Honors event in Washington, D.C., on Sunday night.
Meeting details
Trump's meeting with Netflix co-CEO
Trump revealed he had met Netflix co-CEO Ted Sarandos last week in the Oval Office. He praised Sarandos's work but highlighted the potential market share increase from the acquisition. "They have a very big market share," Trump said of Netflix. "And when they have Warner Brothers, that share goes up a lot."
Deal details
Netflix's acquisition plan and its implications
On December 5, Netflix announced its plan to acquire Warner Bros. Discovery's TV and film studios as well as its streaming division for $72 billion. The deal would give the streaming giant control over one of Hollywood's most valuable assets. The agreement comes after a bidding war where Netflix topped Paramount's bid with an almost $28-a-share offer.
Opposition
Political pushback and antitrust concerns
The proposed acquisition has drawn political pushback and raised antitrust concerns. Congressional Republicans have warned that a Netflix acquisition would limit consumer choice and give the company an unacceptably high share of the streaming market. Senator Mike Lee, who heads the antitrust subcommittee, said on December 3 that such a deal "should send alarm to antitrust enforcers around the world."
Democratic opposition
Democrats also criticize the Netflix-Warner Bros. deal
Democrats, including Senator Elizabeth Warren, have also criticized the deal. Warren called it an "anti-monopoly nightmare" and warned that a Netflix-Warner Bros. merger would create one massive media giant with a significant share of the streaming market. She said this could lead to higher subscription prices and fewer choices for consumers while putting American workers at risk.
Defense
Netflix defends the deal and its potential benefits
In defense of the deal, Netflix has said it would create jobs and give its subscribers "more bang for their buck." The acquisition would eliminate competition between HBO Max and Netflix, but is likely to face a thorough antitrust review by the Justice Department. The combined entity would control around 30% of the US subscription streaming market.